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Any comprehensive approach to urban development requires a strong plan for economic growth with an
equally strong commitment to inclusion. In recent years, all three levels of government in Canada have
recognized the importance of inclusive growth. These efforts have included federal investment in public
transit and affordable housing, community benefit agreements on provin- cial projects, and social
procurement initiatives at the city level. Waterfront Toronto recognized this need in its 2017 Request
for Proposals for Quayside, establishing as one of its primary objectives the need “to deliver key
economic and social benefits that enable Toronto to compete effec- tively with other top-tier global
cities for investment, jobs and talent.”2 Waterfront Toronto also identified a focus for this growth: an
economic cluster centred around urban innovation. Broadly defined as the ability to tackle pressing city
challenges using new physical, digital, or design advances, “urban innovation” is a burgeoning sector
whose global market value is projected to top $2 trillion USD by 2025.3 But despite the vast potential for
urban innovation to spark economic growth, no one place has put together a holistic plan to become the
global hub of this emerging field. The Sidewalk Toronto project provides a unique opportunity to help
meet and exceed government and Waterfront Toronto goals for inclusive growth by generating a new
economic engine — one designed specifically to improve quality of life, affordability, and prosperity for
residents, workers, and businesses of all sizes. Sidewalk Labs proposes a two-part approach to economic
development with the potential to catalyze significant jobs and growth anchored around urban
innovation. This effort involves unlocking new neighbourhoods through upfront investments in critical
infrastructure, such as light rail transit; relocating Google’s Canadian headquarters to Villiers West as
part of a new innovation campus; and implementing a general approach to people-first planning that
aims to attract talent through a vibrant mix of homes, offices, shops, civic amenities, and open spaces.
Together these efforts would help create an “expanded downtown” area capable of supporting new and
existing industries, including the growing film industry in areas adjacent to the IDEA District. How
Sidewalk Labs estimated economic impact To help predict and measure the impact of this approach to
economic development, Sidewalk Labs engaged urbanMetrics, a leading Toron- to-based firm with
extensive experience on the waterfront. The urbanMetrics analysis, detailed throughout this chapter,
demonstrates both the one-time and recurring benefits associated with Sidewalk Labs’ proposal,
compared to an incre- mental approach to development based on pre- vailing land-use policies and
planning trends. The urbanMetrics analysis compared two sce- narios. The first (baseline) scenario
created by urbanMetrics is based entirely on the current set of government-created planning documents
for the project geography (including zoning where it exists, precinct plans, and the Port Lands Planning
Framework). This scenario does not make any assumptions about how implementation of proposals in
these documents might evolve in the future. The second scenario is based on the proposed MIDP plan
and accounts for specific elements and planning approaches that differentiate these plans from
traditional development, including creating the conditions for a cluster in urban innovation, deploying
factory-based mass timber construction for the entirety of the program, and using widespread mixed-
use design at both the neighbourhood and building level. This second scenario considered the IDEA
District to refer to its proposed full geographic scope, including Quayside and the River District.
Critically, Sidewalk Labs recognizes that its approach to accelerating development must benefit
everyone. To plan for prosperity with equity, Sidewalk Labs commits to a robust inclusion program,
anchored by an ambitious housing vision that provides 40 percent of units at below-market rates.
Building on that foundation, Sidewalk Labs plans to launch a new workforce development program,
implement a construction jobs program for equity-seeking populations, and invest in an Ontario-based
mass timber factory capable of supporting approximately 2,500 person-years of full-time employment
over 20 years. Second, Sidewalk Labs plans to help catalyze a cluster focused on urban innovation with
the potential to spark a new economic engine. This effort aims to build on Toronto’s existing assets in
emerging fields of technology and urban design by creating the unique physical, digital, and policy
conditions that would enable innovators, entrepreneurs, and companies large and small from around the
world to research, explore, build, and scale ideas that can improve the quality of life in cities. This
approach involves establishing the IDEA District as a designated zone subject to a special set of
regulatory and policy tools to promote innovation and accelerate development. To further jumpstart this
cluster, Sidewalk Labs plans to help launch an independent, non-profit Urban Innovation Institute —
designed in collaboration with local academic institutions — to serve as a new epicentre for applied
research focused on urban challenges. The impact. Application of Sidewalk Labs’ approach in Quayside is
a critical first step in realizing the city’s goals and the economic potential of the waterfront; it is
expected to result in 3,900 direct jobs and a one-time vertical construction impact of $1.6 billion in value
added to the Canadian economy alone. These impacts would extend to the River District, resulting in a
total of 93,000 jobs (including 44,000 full-time “direct” jobs), $4.3 billion in annual tax revenue, and
$14.2 billion in annual GDP — all delivered on a far more accelerated timeline compared to plans in
place today to activate the waterfront.4 In addition to these ongoing impacts beginning at completion in
2040, the project would also realize cumulative property taxes of $1.6 billion. Sidewalk Labs believes the
majority of jobs located within the IDEA District would be “net new,” meaning jobs that would not
otherwise exist in Toronto but for the creation of the district. While Sidewalk Labs recognizes that a
portion of the total direct jobs would relocate to the district from elsewhere in Toronto, far more would
be new additions to Toronto’s economy, driven in part by the establishment of an urban innovation
cluster. The historically low vacancy rates in Toronto’s downtown core also suggests that if the IDEA
District did attract tenants from existing buildings downtown, there would continue to be demand to fill
that newly vacated space. This growth would enable all three levels of government to maximize the
return realized on the $1.25 billion investment5 made as part of the Don Mouth Natural- ization and Port
Lands Flood Protection Project; allow Toronto to realize more than triple the cumulative property tax
revenues over the baseline scenario from the area within the same time frame; and deliver both critical
public transit infrastructure and thousands of affordable housing units decades earlier than anticipated.
Nearly seven times as many jobs by 2040 Implementation of Sidewalk Labs’ plans for the IDEA Dis- trict
could realize significantly greater permanent employment opportunities, achieved on a faster timeline,
than existing proposals. In its analysis, urban- Metrics estimates that, by 2040, the IDEA District would
stimulate more than 93,000 jobs — nearly seven times the number of jobs by 2040 that would be
realized under the approach currently envisioned in the Port Lands Planning Framework. Nearly seven
times the annual GDP contribution by 2040 In its analysis, urbanMetrics estimates that, by 2040, the
IDEA District would contribute nearly seven times the value to Canadian GDP annually than would result
from existing proposals for the eastern waterfront. Sidewalk Labs recognizes that there are many
factors that could contribute to increased value aside from the unique conditions established in the
IDEA District, such as a potential increase in commercial and residential density. The baseline scenario
assumed the densities as currently considered in existing planning documents. Three times the
cumulative property tax revenue by 2040 Accelerating development of the eastern waterfront would
allow for a rapid accumula- tion of property tax revenues generated upon expedited occupancy. In its
analysis, urbanMetrics estimates that, by 2040, full buildout of the IDEA District would accrue more than
three times the cumulative property tax revenue of that generated under existing proposals. Nearly
seven times the annual ongoing tax revenue by 2040 The urbanMetrics analysis also estimates that
overall annual tax revenues generated throughout the IDEA District would be realized at a magnitude
nearly seven times that of the baseline scenario by 2040. Importantly, a fully developed IDEA District
would have the capacity to produce this annual benefit across municipal, pro- vincial, and federal
jurisdictions Sidewalk Labs’ plans for Quayside and proposed approach for the IDEA Dis- trict would help
the city and Waterfront Toronto unlock the potential of this underutilized area on an accelerated
timeline, creating the conditions for significant new economic growth. Part 1 of this chapter outlines
the steps necessary to lay that foundation As a next step, the relocation of Google’s Canadian
headquarters onto Villiers Island as part of a new innovation campus would spark economic activity and
draw businesses and talent from around the world. A thoughtful approach to mixed-use development
that integrates new innovations to improve sustainability, affordability, and mobility would further
attract workers and residents by creating complete communities filled with homes, jobs, shops,
community spaces, and parks. Strategy 1 Accelerating Development Unlock the waterfront through
infrastructure investments Sidewalk Labs’ holistic planning approach prioritizes (and provides optional
financing for) accelerated delivery of district-scale infrastructure systems, setting the necessary
foundation to support widespread development by a range of players and providing critical connectivity
to and from the city’s existing economic centres. Attract talent and jobs with complete communities
Support new and existing industries with an “expanded downtown” connect the area with the rest of the
city but also with other planned development nearby, including commercial development at East
Harbour and the planned expansion of the Film District. Finally, new affordable housing and workforce
development programs help ensure that this approach to prosperity also comes with equity — creating
opportunities for Torontonians of all ages, incomes, and abilities, as well as businesses of all sizes.
Waterfront Toronto and all three levels of Canadian government have taken major steps towards
reconnecting Toronto- nians to the waterfront and realizing its immense economic potential. The largest
recent example is the $1.25 billion Don Mouth Naturalization and Port Lands Flood Protection Project
announced in 2017.6 Yet this commitment is only one component of the infrastructure necessary to
truly capture the enormous potential of the eastern waterfront. Sidewalk Labs estimates that the addi-
construction. But this process could lead to piecemeal infrastructure expansion and create doubts
around the timely construction of core infrastructure, especially the light rail extension. Accelerating
delivery of these infrastructure systems, particularly public transit, would likely have an outsized effect
on the pace of economic growth. The benefits of early investments in core infrastructure have been
found in cities around the world, from Washington, D.C., to Rotter- dam. The stakes in Toronto are just as
Plan for prosperity with equity Realizing the full potential of the IDEA District begins with early delivery
of the planned Waterfront Light Rail Transit extension. tional utility, energy, and public transit
infrastructure needed to enable development of the IDEA District could total upwards of $3 billion, with
these costs reaching upwards of $4.5 billion across the entire eastern waterfront.7 One standard
approach to securing this infrastructure is to collect necessary funds through charges levied on devel-
opments immediately before they begin high. According to a 2019 report prepared for the Waterfront
Business Improvement Area (BIA) organization by the engineering and development consultancy Hatch,
a delay in light rail development until 2045 would result in over $20 billion in forgone cumulative tax
revenue across all three levels of government and cost more than $1.8 billion in lost productivity.8 The
importance of early investment in public transit Making large infrastructure investments in public transit
is a crucial first step in accelerating development, encouraging more sustainable mobility choices, and
creating more affordable communities. Transit provides essential access to growing urban districts and
enables cities to realize the economic potential of newly developed areas on a far earlier timeline. As
mentioned on Page 108 of Volume 1 and described in greater detail in the “Mobility” chapter of Volume
2, Sidewalk Labs proposes that the public sector pur- sue a self-financing approach to transit expansion
within the IDEA District before development begins in this area. This approach draws inspiration from
several precedents. 1. Capitol Riverfront (Washington, D.C.). The Capitol Riverfront in Washington, D.C.,
is one of the city’s most vibrant areas today, but for years it was inac- tive and underutilized. To
redevelop this former industrial area, the city made an early investment in transit infrastructure, creating
two new metro stops in the district that expanded subway service and connected the riverfront directly
to the city centre. Like the planned extension of the light rail, the D.C. riverfront’s new line connected to
the city’s primary train station, with access to regional and national rail lines. The results of this
investment were significant. Early provision of transit facilitated the relocation of critical anchor
tenants, which in turn attracted jobs and activity to the district, fuelling additional growth and
development over time. The Capitol Riverfront metro stops were completed in 19919; between 2004
and 2016, jobs along the corridor grew to 76,000, representing a 94 percent increase.10 2. Kop van Zuid
(Rotterdam). In Rotterdam, initial efforts to develop the Kop van Zuid historic docklands initially stalled
due to the lack of transit infrastructure and connectivity to the rest of the city.11 Recognizing that
private developers were unwilling to invest in the area for these reasons, the central government, the
public sector Rotterdam City Development Corporation, and the Rotterdam Transport Company
funded12 the district’s first large-scale project: construction of the Erasmus Bridge, with vehicle,
pedestrian, and rail access.13 Today, Kop van Zuid is one of the densest areas in the Netherlands and is
known for the physical, social, and economic connections it has fostered between North and South
Rotterdam. For example, South Rotterdam, which was previously discon- nected from the economic city
centre, now sits adjacent to a strong commercial district with direct access to the rest of the city via the
Erasmus Bridge.14 3. Canary Wharf (London). As described in more detail in the “Mobility” chapter of
Volume 2, the risks of developing an area without robust public transit connection in place include the
potential to stifle growth or become locked into expensive road infrastructure that generates traffic
congestion. Take Canary Wharf in London, where the lack of transit connectivity was one of several
factors that initially crippled efforts to redevelop the city’s deteri- orating docklands in the early 1990s.15
Without a reliable transit system, the area struggled to attract a critical mass of businesses. Following
investment in new transit infrastructure, which connected the area to the rest of London, Canary Wharf
was able to become a more active, diverse urban neighbourhood and realize its potential as a core
business centre. In Toronto, the importance of a connection between the downtown core of Toronto
Sidewalk Labs’ proposal to support early financing of the light rail extension provides an alternate
option for the city to relieve funding pressures and enable the delivery of the system on an expedited
time frame. and the eastern waterfront has long been recognized by public and private stakeholders.
Numerous municipal planning documents, including Toronto’s 15-Year Rapid Transit Network Plan and
the City of Toronto’s Official Plan, as well as industry analysis such as the Waterfront BIA report, all
affirm the potential benefit of such an extension by opening up the waterfront for residents and
businesses. Funding for projects of this magnitude can be difficult given the many competing needs of
thriving cities. The Toronto Transit Commission (TTC) alone has identified nearly $24 billion in existing
transit needs over the next 10-year planning period16 (including the Line 2 East Exten- sion, formerly the
Scarborough Subway Extension, the Ontario Line, Eglinton East LRT, Sheppard East LRT, and SmartTrack
commuter-rail line transformation), $17.5 billion of which does not have designated funding.
Furthermore, city officials often need to prioritize funding for projects that serve an immediate need for
existing con- stituencies over those that supplement long-term development plans, especially in
underdeveloped areas. Sidewalk Labs endorses a $1.2 billion, 6.5-kilometre light rail extension that
would realize the city’s existing plans and position the eastern waterfront for future development. To
help accelerate the implementation of this extension, Side- walk Labs commits to providing financing,
which could facilitate the delivery of a significant portion of the system years sooner than currently
projected in the TTC 2018 Corporate Plan.17 In addition to providing critical connectivity to Union
Station, Quayside, the planned East Harbour transit centre, the West Don Lands, the Distillery District,
and neighbourhoods to the east, the expanded light rail would become the transit spine connecting
economic hubs across the eastern waterfront.18 Sidewalk Labs envisions the light rail linking a new
economic hub, anchored by Google, at Villiers West, with a film and media cluster concentrated within
the Film District and McCleary District, and the GO train and future subway transit hub and commercial
core at East Harbour. Mobility across these hubs would contribute to the vitality of each area, allowing
convenient and affordable access for residents, workers, and visitors. Beyond increasing access, early
provision of the light rail extension has the potential to encourage more sustainable choices among
travellers. When transit is intro- duced earlier in an area’s development, residents and visitors are more
likely to develop commute and travel patterns that prioritize public transit over the use of private car
trips, creating a virtuous cycle in which future development also prioritizes more sustainable mobility At
full buildout of the light rail infrastructure over parking lots or wide streets designed primarily for vehicle
trips. The aforementioned Waterfront BIA report estimates that the extension of the light rail has the
potential to prompt a significant mode-share shift — resulting in a 44 percent decrease in automobile
use19 and a 15 percent increase in public transit usership (by incoming workers and residents). Sidewalk
Labs anticipates the light rail extension would link to the city’s expan- sive existing network, including
connections to multiple citywide routes that carry over 250,000 passengers daily.20 At full buildout of
the light rail extension, Sidewalk Labs estimates that it could support roughly 72,900 daily trips and
reduce car trips by 16.5 percentage points. Enabling holistic planning and long-term sustainability Early
delivery of the light rail extension would also make investments in other district-scale infrastructure
more viable, enabling the City of Toronto and Waterfront Toronto to undertake a holistic approach to
planning for development, rather than funding piecemeal solutions that may result in only incre-
mental improvements. A comprehensive approach at a district scale would enable the integration of
innovative systems such as a thermal and power grid to support energy efficiency, dynamic Hong Kong
provides a particularly relevant precedent for using a self-financing or value capture model to support
the growth of complete communities. The city undertook a strategy of proactively focusing growth in
areas close to the city’s Mass Transit Railway system,21 drawing private investment for new revenue
sources enabled through the transit system, including publicly owned spaces adjacent to the transit
system, the sale of air rights above rail stations, and retail and advertising within stations. With access to
these new revenue streams, Hong Kong was able to invest back into its transit system as well as in new
community benefits, which included the potential for over 600,000 new public housing units.22
Similarly, on the far west side of Manhat- tan, ongoing development of one of the city’s last remaining
underdeveloped areas was enabled in large part through an extension of the city’s No. 7 train line. The
new transit infrastructure, completed in 2015,23 created a vital lifeline between the west side of
Manhattan and extension, Sidewalk Labs estimates that it could support roughly 72,900 daily trips. street
networks, and greener energy and stormwater management systems that support the city’s critical
sustainability goals and Waterfront Toronto’s climate-positive ambitions. A transit-first approach
designed to enable the development of dense, walkable neighbourhoods has the added impact of
allowing for more complete communities, connecting a broader diversity of residents and visitors to new
jobs and areas of economic activity. the rest of the city, drawing additional investment and encouraging
businesses to relocate and contribute to a new centre of activity. The city’s use of a value capture
model is expected to produce more than $21 billion USD in net revenue by 2047, according to a 2019
analysis.24 To further accelerate the development of a new hub for economic activity and innovation,
Alphabet commits to establishing a new Canadian headquarters for Google on the western edge of
Villiers Island, as part of an agreed-upon transaction within the IDEA District. Alphabet would target up
to 500,000 square feet, which would be sufficient to accommodate as many as 2,500 jobs, the majority
of which would be for Google employees (though actual hiring will depend on market conditions and
business requirements). Based on its impact in other neighbourhoods in cities around the world,
described more on Page 441, Google’s arrival on the waterfront has the potential A view of the western
edge of the innovation campus (looking west towards downtown). to catalyze economic growth,
attracting firms of all sizes and a diverse workforce, while contributing to the growth of Toronto’s existing
innovation ecosystem. Establishment of large-scale Google campuses in other cities has consis- tently
demonstrated significant impacts in the local real estate market,25 such as strengthening demand for
Class A office space, increasing private-sector activity and investment, and driving retail and residential
growth that far outpaces the rest of the city. In many cases, Google’s arrival has prompted the rapid
development of local micro-markets, validating the competitive position of specific neighbourhoods
within a city and generating an influx of activity. Critically, Sidewalk Labs’ approach prioritizes equitable
access to economic prosperity and opportunity, ensuring Google’s presence at Villiers West spurs
inclusive growth and is realized by a broad diversity of Torontonians, as described in greater detail on
Page 462. An innovation campus to catalyze an ecosystem Sidewalk Labs’ proposal for an innovation
campus on Villiers Island includes approximately 2.7 million square feet of mixed- use development,
anchored by the future home of the Urban Innovation Institute and Google office space. The campus
would be located on a planned light rail stop and adjacent to the seven-hectare Promontory Park. In this
location, the campus would serve as an important con- nector between the city’s downtown core and
the rest of the eastern waterfront. The urban innovation campus on Villiers Island would be specifically
designed as a campus featuring residential spaces integrated with non-residential spaces for business,
cultural, retail, and community uses. The Google Canadian headquarters itself would include select areas
dedicated as Google workspaces, as well as more flexible spaces to support a range of community uses,
with the flexibility to change over time. By creating such a campus at Villiers Island, filled with a range of
businesses and neighbourhood amenities, Google would help attract a deep talent pool of workers and a
range of best-in-class employers, establishing the neighbourhood as one of Canada’s premier business
and innovation districts. A range of commercial, retail, and community spaces of all sizes would enable
businesses large and small to locate within this new economic centre, ensuring that the eastern
waterfront is open for business to a broad range of players. Google’s reputation as a leader in
innovation is well known: a recent survey of executives at various technology firms26 ranked Google as
the top leader in “driving technology innovation,” above Apple, Microsoft, Tesla, Alibaba, and Amazon. At
the neighbourhood level, Google’s campus model, designed to encourage collaboration and knowledge-
sharing, has positioned its offices as local hubs for innovation. For example, in Pittsburgh, Google is the
largest tenant at Bakery Square,27 operating alongside departments from Carnegie Mellon University.
The co-location of these and other players has fuelled cross-disciplinary collaboration: Google
operates a 24-hour shut- tle between its offices and CMU,28 and Google staff participate in student
thesis committees. Further, Google’s arrival resulted in a rise in commercial growth as More than 8,000
jobs were added in Kitchener-Waterloo’s tech sector from 2011 to 2016. well as in startup incubator,
accelerator, and co-working spaces; it has also drawn further investment from other major companies
throughout the area.29 In addition to driving the development of an ecosystem for innovation along the
eastern waterfront, the establishment of a larger Google Canadian headquarters on Villiers Island has
the potential to strengthen the emerging innovation corridor between Toronto and Kitchen- er-Waterloo
and support the growth of both locations. Located 110 kilometres west of Toronto, Kitchener-Waterloo is
home to a rapidly growing hub for technology,30 including Google’s largest engineering office in
Canada.31 More than 8,000 jobs were added in Kitchener-Waterloo’s tech sector from 2011 to 2016,32
representing the highest growth rate among Canada’s top 10 metropolitan areas. The development of a
parallel node of activity in the eastern waterfront enables further opportunities for attracting talent at
both locations while reinforcing the region’s leadership on a global stage. The proposed East Harbour
Transit hub would provide a public transit connection between Kitch- ener-Waterloo and the IDEA
District. While Sidewalk Labs believes that the unique innovations planned for Quayside will draw new
residents, workers, and visitors, the role of Google as an anchor tenant has the potential to significantly
build on this momentum. As described by economist Enrico Moretti,33 the presence of anchor
corporations like Google have driven growth of new economic and innovation economies to a greater
degree than government initiatives alone. This trend has been demonstrated across a range of
innovation clusters in North America, including Kansas City, Boston, San Diego, Seattle, and Vancou- ver,
and has the potential for replication in Toronto as well. The catalytic impact of a large Google presence
Once a critical mass of employees has been reached, Google’s impact on local job and real estate
markets has been found to support a city’s competitive position as an economic engine. To estimate the
potential impact of Google’s relocation to the waterfront, Sidewalk Labs conducted extensive research
on the impact of Google in cities around the world, focusing on New York, Los Angeles, Chicago, and
Austin, Texas, each of which has between 1,000 and 10,000 Google employees, a range that indicated
the impact of the proposed new campus. Across these cities, Google’s entrance correlated with
characteristics of growth within the local district, above and beyond that of the rest of the city.
Compared to the years prior to Google’s arrival, each of the districts studied exhibited an increase in
office value in the five years following Google’s occupancy, as well as an uptick in the retail and resi-
dential inventory of the area. Sidewalk Labs believes the establishment of a larger Google campus on the
eastern waterfront could catalyze growth similar to that demonstrated in each of these markets — and
particularly to that of New York City and Chicago. Google New York. In New York City, Google has grown
to over 7,000 employees in nearly two decades,34 helping to transform the western edge of Manhattan
into a major economic hub that rivals Midtown and the Financial District. The growth of big tech
companies like Google has demonstrated potential to catalyze small business formation, create buyers
for the products that startups produce, and encourage skilled workers to apply for tech-related jobs in
non-tech industries. Academic research suggests that a high concentration of tech employment can
improve wages for a wide Further, the value of office space in the Meatpacking District has almost
tripled following Google’s arrival, again far out- pacing that of Midtown Manhattan, which did not
demonstrate any meaningful growth over the same time period. While both Chelsea and the
Meatpacking Dis- trict experienced declining office value rates in years prior to Google’s arrival, the post-
Google years reversed this trend, resulting in 3.3 percent average quarterly growth in the Meatpacking
District and 1.7 percent average quarterly growth in Chelsea. Growing demand in these areas has, in
turn, changed the character of retail in the area, resulting in more restaurants and amenities available
within walking distance for a growing workforce, for residents, and for visitors to the neighbourhood.
The new office space drove broader impact throughout the city as well, including by catalyzing the
develop- Google Chicago by the numbers: 100% post-Google increase in office inventory 5.7% average
quarterly increase in office space value 400% growth in multifamily unit inventory Today, more than five
years after Google announced its move, the Fulton Market area is home to robust a new neighbourhood
and business district. New restaurants and retail and lifestyle shops have drawn visitors to the area at a
rate that has not been seen in the past. Campus spaces that host a range of creative uses function as a
magnet for talent and attract employers seeking to source local workers. Fulton Market is now one of the
most in-demand areas for growth and relocation.38 Google’s arrival at Fulton Market has also led to an
increase in office inventory of more than 100 percent, compared to only 19 percent growth throughout
the West Loop in the same time period. The value of Fulton Market’s office spaces has increased as well
— at a rate of 5.7 percent on average quarterly, compared to a rate of 0.9 percent prior to Google’s
arrival. In addition to expanded commercial space, the Fulton Market area has experienced nearly 400
percent growth in the inventory of multifamily units, compared to an increase of 39 percent in the West
Loop over the same time period. range of jobs,35 including those that do not require a degree. More
broadly, the growth of tech jobs is associated with an increase in the overall number of non- tech jobs,
amounting to approximately five new non-tech jobs for every new tech job created. Google’s growth in
New York City has impacted the commercial interest of surrounding areas as well, validating the
competitive position of the Meatpacking District as a core hub of economic activity. In the five years
following the arrival of Google, the Meatpacking District experienced a more than 10 percent increase
in commercial inventory, and the broader geography of Chelsea (which includes the Meatpacking
District) experienced a 30 percent increase. This growth is especially significant in light of the overall
stagnation of office inventory in Midtown Manhattan over the same time period. ment of lower-cost
commercial districts in New York City’s outer boroughs, particularly Brooklyn and Queens. Google
Chicago. In Chicago, the Fulton Market neighbourhood, located west of the city’s downtown core, was
announced as the home to Google’s midwestern headquarters in 2013,36 ultimately opening in 2015.37
Prior to Google’s entrance, the area was largely home to food processors and distributors. Despite the
area’s proximity to major expressways and the downtown core, the historically industrial area struggled
to draw sustained commercial interest. Google’s arrival at Fulton Market represented the first move of a
large-scale commercial entity, repurposing an existing windowless and formerly industrial warehouse
into an office for hundreds of employees. The benefits of compact, walkable, mixed-use neighbourhoods
designed for residents are now well-established, including improved public health, a stronger sense of
community, reduced pollu- tion, and a greater range of housing and transportation options. Sidewalk
Labs’ proposed plans for Quay- side and Villiers West, and its larger vision for the IDEA District, would
advance existing strategies for creating dense urban neighbourhoods activated by a vibrant streetscape,
including through an expanded public realm that draws people outdoors, a street network that
prioritizes pedestrians and public transit, adaptable building spaces that accelerate renovations, and a
new approach to programming ground floors that expands opportunities for small businesses and
community spaces. This new type of complete community with quality-of-life benefits would be
attractive to entrepreneurs and companies of all sizes and establish the eastern waterfront as a magnet
for top talent and new jobs while preserving and promoting socioeconomic diversity. Mixed-use
neighbourhoods as a backdrop for economic opportunity Twenty years ago, many experts claimed that
the rise of email, video-conferenc- ing, and other low-cost digital communications would eliminate the
need for workers to meet face-to-face — and, by extension, the competitive advantage of cities. Today, it
is clear that the opposite is true. In a knowledge economy increasingly driven by new ideas, the
networking effects of urban density are more important than ever. A clear bellwether of this trend is
the steady demise of the isolated The revitalization of the formerly industrial “Two Kings” area has
helped establish Toronto as a global leader in mixed-use development. suburban office park and the
global ascent of mixed-use neighbourhoods in the heart of urban centres. Cultural, generational, and
market changes in urban areas are happening faster than ever before, and cities need to be prepared to
be more flexible and responsive to these shifting dynamics. Mixed-use environments provide the
necessary integration of resources for talent and companies of all sizes to thrive, serving as a backdrop
for the innovation economy. Throughout Toronto, the reimagination and reinvestment in several older
central areas of the city — including Liberty Vil- lage, Corktown, and the Distillery District — has resulted
in a set of dynamic business districts that contribute to the vitality of their surrounding neighbourhoods
and to the city at large. Each of these areas has attracted leading-edge companies and cultural
enterprises, paving the way for new economic opportunity. Perhaps the best-known examples are at
King-Spadina and King-Parliament — the “Two Kings.” There, formerly industrial buildings underwent
redevelopment efforts in the mid-1990s to spur the renewal of the surrounding area, which at the time
was underdeveloped and largely comprised of surface parking lots. Rede- velopment of the two areas
was enabled through what was innovative regulation at the time — a zoning bylaw, implemented in
1997,39 that eliminated antiquated land- use policy restrictions and allowed for a new mixed-use
development approach. The success of these districts is widely lauded in Toronto and beyond and has
helped establish Toronto as a global leader in mixed-use planning. Revital- ization of the Two Kings has
allowed for more than 50,000 new residential units.40 And while job growth in Toronto increased by 20
percent citywide between 1996 and 2016, job growth in King-Spadina and King-Parliament far outpaced
this trend, increasing by nearly 70 percent and 30 percent, respectively. In the two decades since
redevelopment efforts were completed, more than 20,000 net new jobs have been created in these
districts, nearly 30 percent of which are in the cultural, creative, and tech sectors. The transition of the
Two Kings into thriving mixed-use areas was enabled in large part through the expansion of land uses,
which in turn allowed for the entry of larger waves of tenants and businesses. Each new entrant was able
to take advantage of the historic spaces in ways that the original architects and city planners never
conceived, but given the Advancing mixed-use plans with innovation to create a new type of place
Sidewalk Labs’ vision for the IDEA District builds on existing best practices for mixed-use planning by
integrating a suite of innovations designed to draw more people outdoors, encourage more active
transportation choices, help buildings respond to market conditions, and create a livelier mix of homes,
offices, shops, social infrastructure, and community uses. The large-scale application of this approach
would create a truly dynamic live-work community in which households and businesses of all sizes can
find the spaces they need to thrive. An expanded public realm that draws people outdoors. Residents
and workers in the IDEA District would benefit from open spaces and sidewalks made comfortable at
least 35 percent more of the year thanks to a set of weather-mitigation tools — deployed in real time
based on micro-climate data All proposed digital innovations would require approval from the
independent Urban Data Trust, described more in the “Digital Innovation” chapter of Volume 2. new
mobility options (and, eventually, self-driving vehicles) that reduce the need for vehicle space. This
improved walk- ability and public transit access form the foundation of a complete community that puts
homes near work and residents near essential daily services. Adaptable building spaces that accelerate
renovations. Adaptable “Loft” spaces designed to accommodate both residential and non-residential
uses can ensure an ongoing mix of households and businesses while reducing vacancy time. Loft’s flex-
ible interior wall system enables renovations to occur 50 percent faster than in traditional building
spaces, ensuring that neighbourhoods can respond to changing market conditions. A new approach to
programming ground floors that expands opportunities. Adaptable stoa space on the lower two floors of
buildings in the IDEA District are designed to accommodate a wide range of retailers, pop-up shops, civic
groups, and maker spaces. A digital leasing platform enables these spaces to be leased at a variety of
sizes big or small and at lease lengths short or long, as needed, expanding opportunities for small busi-
nesses and startup ventures. A range of housing options that improve affordability. In addition to a 40
percent below-market housing program (described more on Page 463), efficient unit designs can
expand housing options for single-person and multi-generational households alike, enabled by
advances including access to off-site storage space with on-demand shipping. A network of social
infrastructure to anchor complete communities. Ensuring a strong network of social infra- flexible
design, these spaces were able to be repurposed for a range of new uses. Examples like Two Kings
demonstrate how the nature of urban experiences in mixed-use districts represents a marked difference
from traditional economic centres, with the capacity to draw new talent and companies, facilitating
more diverse economic activity in cities. — that provide shade from the sun and shelter from the
elements. Open spaces and sidewalks would be integrated closely with the surrounding stoa space,
creating the foot traffic and vibrant street life ground-floor retailers depend on. A street network that
prioritizes pedestrians and public transit. To further encourage active sidewalk life, the IDEA District
would feature a street network designed to expand pedestrian space by up to 91 percent compared with
business-as-usual development, enabled by transit, walking, cycling, and The IDEA District innovations
would create a truly dynamic live-work community in which households and businesses of all sizes can
thrive. structure, including access to health care and community services, is critical to meeting
Waterfront Toronto’s objectives for designing complete communities. The city has also noted the need to
ensure that appropriate, affordable, and accessible space is available for the delivery of services; to
proactively plan for health care service delivery alongside community services and facilities planning;
and to co-locate services in central hubs to enhance coordination and resource sharing. In fact, all levels
of government have recognized the need for enhanced integration of services. The network of
neighbourhoods that emerge from Quayside and Villiers West would connect three anchors of economic
activity: the innovation campus on Villiers West, a hub of new office space at East Harbour, and Toronto’s
Film District. Waterfront Toronto and the City of production demands, Toronto’s studios have been
forced to turn away multiple projects each year. Other jurisdictions throughout Canada and the U.S. are
increasingly bidding for and winning larger pieces of the production pie thanks to some structural
advantages over Toronto, such as milder weather and larger production spaces. The value of projects
turned away due to lack of studio space cost Ontario potential revenue of $130 million in 2016 alone,46
with the potential for greater impact in years to come. Sidewalk Labs supports the film industry and
recognizes the value of dedicating the lands within the Film District and Media City exclusively for film-
related uses. This area has deliberately not been included in the geographic boundaries can result in
housing opportunities for film industry employees, help attract talent, and create a vibrant environment
around the studios. Transit connections, such as the Waterfront LRT expansion, with a stop at the border
of the existing film district, would connect the studios to both Union Station and the planned East
Harbour transit hub, greatly facilitating access between the facilities and the rest of the city. Sidewalk
Labs has identified specific opportunities to collaborate directly with the film industry and hopes to
explore them as the Sidewalk Toronto project advances. This effort includes the integration of film-
supportive design into its plans for the public realm, streets, and buildings in Quayside and Villiers West.
Toronto have played a leading role in sparking new business activity and the development of new
communities along the waterfront. Partnerships with the development community in recent projects at
East Bayfront, the West Don Lands, Corus Entertainment, George Brown College, and Menkes Develop-
ments’ Waterfront Innovation Centre set the stage for a significant concentration of employment
extending into the developments of Quayside and the innovation campus on Villiers West.41 When
combined with two other major economic drivers — First Gulf’s East Har- bour project, which will
provide necessary expansion relief for the downtown office market,42 and the current and future
activity within the Film District and Media City43 — the volume and diversity of economic activity would
transform the eastern waterfront into a second commercial core for Toronto. Embracing the film
industry on the eastern waterfront Toronto is home to a thriving cluster of film-related industries that
have helped to establish the city as a global film and television production leader and to boost tourism,
including through the promotion of renowned events like the Toronto International Film Festival. Much
of the industry’s resources are concentrated on the waterfront, including production, distribution,
exhibition, post-production, and radio and television broadcasting functions.44 The film industry has
broad economic impact and is a critical economic driver for Toronto: in 2016 it contributed more than $2
billion, and each year it has been responsible for approximately 40,000 jobs.45 The industry’s growth is
now quickly out- pacing capacity. Without sufficient studio space to meet local and international of
Sidewalk Labs’ proposed IDEA District. Sidewalk Labs also recognizes that film expansion projects could
occur within the boundaries of the proposed IDEA District, such as the McCleary District, and is com-
mitted to supporting the inclusion of such projects within precinct plans and other such actions
undertaken by Waterfront Toronto or the City of Toronto. Sidewalk Labs also believes that the aspi-
rations for the IDEA District, the development plans for Quayside and Villiers West, the acceleration of
the infrastructure, and the creation of vibrant mixed-use neighbourhoods would boost film industry
growth. The growth of the urban innovation ecosystem along the waterfront can create opportunities
for the film industry to participate in and benefit from the physical, digital, and policy innovations
unfolding in its backyard. Proximity to mixed-use, affordable neighbourhoods For example, access to
power sources and internet connectivity within the public realm — provided as part of Sidewalk Labs’
proposals for open space infrastructure and digital innovation — could present new, cost-effective
opportunities to support film shoots. Additionally, film is a technology-driven industry, and Sidewalk Labs
believes that opportunities should be explored for the film industry to participate in the ecosystem for
urban innovation envisioned at Villiers West. For example, post-production departments could
collaborate with graphic design startups to improve film animations or special effects. The urbanMetrics
analysis estimates that the IDEA District would stimulate 44,000 full-time direct jobs by 2040. Within the
first 10 years alone, the district would be home to more permanent jobs than the total number
predicted for the baseline scenario at full completion, which is not projected to occur until 2050. The
IDEA District would support three economic hubs that together would transform the eastern waterfront
into a second commercial core for Toronto. Plan for prosperity with equity Sidewalk Labs is committed to
not only spurring sustainable economic development throughout the IDEA District but to doing so in a
way that is equitable to all, expanding opportunities for those who have traditionally faced barriers to
prosperity. Like all growing cities, Toronto faces challenges around equity, affordability, work To help
directly mitigate these consequences, Sidewalk Labs’ approach to driving economic growth starts with
an ambitious program for affordable housing and other commitments to diversity, equity, and inclusion.
It builds on this foundation with a set of workforce development initiatives designed to help prepare
Torontonians for the 21st-century economy. More broadly, Sidewalk Labs’ vision for growth aims to
lower barriers to entry and enable a wide range of innovators to plug into an open platform — with an
emphasis on individuals who might not otherwise have access to employment opportunities or the
resources to launch a business. Research suggests that clustering industries enhances skills training and
non-profit partnerships for employment positions, supporting transitions to higher-skilled jobs. Side-
walk Labs aims to build on this trend by Affordability and accessibility commitments: Anchored by 40%
below-market housing Sidewalk Labs believes that prosperity must not sacrifice equity — and that
thoughtful planning can help both coexist. To help ensure that the IDEA District does not become an elite
enclave, Sidewalk Labs has committed to a broad plan for diversity, equity, and inclusion (see Page 82)
anchored by a housing program that devotes 40 percent of units to below-market housing. As described
in further detail in the “Buildings and Housing” chapter of Vol- ume 2, Sidewalk Labs’ vision for housing
devotes 20 percent of units to traditional affordable housing (a quarter of which would go towards
households with “deep” affordability needs) as defined by the City of Toronto. Another 20 per- stability,
and income disparity — issues with disproportionate impacts on mar- ginalized and vulnerable groups.
Sidewalk Labs’ program for the IDEA District is built on the premise that urban development and
technological innovation must advance prosperity for all, particularly those who have been historically
excluded from opportunity. Residents of high-demand cities across North America are increasingly
concerned that the economic growth generated by new technology industries will benefit a select few
while creating greater affordability challenges for many. In San Francisco, for example,47 the tech boom
increased median income but also led to a widening income-inequality gap, and a lack of new or
affordable housing has driven low-income households to relocate elsewhere. Similar fears of pricing out
lower- and middle-income households often arise with new mixed-use developments. For all their
benefits in terms of transit access, health, and vibrancy, mixed-use developments have also been found
to increase housing prices unless there are explicit commitments to affordability. One recently published
study found that the decline in affordability in Toronto between 1991 and 2006 was more severe in
mixed- use zones than in the rest of the city.48 Despite Canada’s global reputation for inclusion, many
sectors fall short on diversifying their workforce — and the tech sector is no exception. A 2017 survey of
900 Canadian tech firms found that women occupy just 5 percent of CEO roles and 13 percent of
executive positions.49 A 2018 study of Toronto’s tech community by MaRS found that nearly two-thirds
of black respondents reported experiencing discrimination at their jobs.50 leveraging partnerships with
academic institutions, research organizations, and non-profits to support new training and educational
opportunities. By creating the conditions to spur innovation, Sidewalks Labs can enable a range of third
parties to discover promising solutions to urban challenges that create brand new career paths for
people with a range of backgrounds. cent of units would go towards middle- income households that
cannot qualify for affordable housing programs but also cannot afford to pay market rates for rentals or
homes. Additionally, half of all housing units in this program would be purpose-built rentals to improve
affordability over the longer term. And 40 percent of units would be “family-sized” at two bedrooms or
larger. In addition to expanding housing affordability, Sidewalk Labs aims to improve the “all-in”
affordability of living in the neighbourhood. For example, Sidewalk Labs believes its expanded suite of
mobility options — including better walking and cycling infrastructure, public transit expansions, and
ride-hail services — would enable households to give up car-ownership without sacrificing their ability
to get around. Sidewalk Labs estimates that a two-person household that gives up a car in exchange for a
Side- walk Toronto mobility subscription pack- age would save more than $4,000 a year.51 A complete
community must also plan for people of all ages and abilities. To accommodate residents across the lifes-
pan, from seniors wishing to age in place to growing families with young children, Sidewalk Labs plans to
incorporate flexible housing types that can expand or shrink with household needs, co-living units that
provide greater community support, and a range of social infrastructure services accessible throughout
neighbourhoods. A host of accessibility initiatives would include accessible street features and building
entrances for people who use wheelchairs, and new wayfinding tools for people who are visually
impaired. Together these efforts are designed to ensure that the opportunities provided by this
economic development plan truly exist for the benefit of everyone — and to demonstrate to cities
around the world that prosperity with equity is not just pos- sible but necessary in the digital age.
Workforce development: Preparing Torontonians for the 21st-century economy Sidewalk Labs plans to
provide workforce development opportunities to ensure the local workforce is equipped with the skills
needed to suc- ceed in a 21st-century economy. The IDEA District should become a place where more
women feel empowered to launch startups and scale prototypes; where workers without college
degrees can find apprenticeships in new trades such as mass timber, equipping them not only to
complete one-off construction jobs but to launch meaningful careers in an emerging field; where
graduate students from other countries can move to conduct research at the Urban Inno- vation Institute
and find a welcoming, affordable community. By implementing an economic development strategy that
is designed specifically to improve access to opportunity, the eastern waterfront and Toronto on the
whole could fundamentally redefine development practices, setting a higher standard for economic
equity and demonstrating tools and programs that can be replicated around the world. Sidewalk Labs’
economic development strategy has the potential to realize priorities identified by the city, including
those articulated in its Official Plan. These include supporting “employment and economic development
that meets the objectives of Toronto’s Workforce Development Strategy, including people-based
planning and the Vision Statement on Access, Equity and Diversity and promoting infrastructure and
support programs to ensure that all Torontonians, particularly equity-seeking groups, such as racialized
youth, persons with disabilities, single mothers and newcomers, especially refugees, have equitable
access to employment Sidewalk Labs plans to ensure that at least 10% of hiring is reserved for low-
income youth, women, and Indigenous people. opportunities”; and recognizing “the full diversity of
employment activities that are increasingly taking place in non-traditional employment areas such as
homes and public spaces, and strengthening the necessary regulatory frameworks and policies to
support this employment.”52 Building stronger and more inclusive pathways into both the urban
innovation economy and the broader economic opportunities unfolding across the waterfront is critical
to ensuring that the wealth created here is broadly shared, as well as to meet growing employer
demands for a skilled workforce. Getting into the opportunity pipeline early in life is critical for
strengthening economic mobility. At the same time, reskilling mid-career workers to shield them from
economic disruption is an increasingly urgent challenge. In Ontario, it is estimated that up to 3 million
workers could lose their jobs to automation over the next 20 years.53 Increasing worker productivity is
also critical in light of Canada’s shifting demo- graphics. In 2016, for the first time in history, seniors over
the age of 65 out- numbered children under the age of 14.54 This has worrying implications for future
productivity and the ability of workers to support an expanding population of seniors. The gig economy
is also cause for concern. In 2016, for example, nearly all net new job creation in Canada was for part-
time roles, according to TD Eco- nomics.55 Developing more permanent, high-quality jobs is essential for
promoting broad-based social mobility. Conceived in close concert with local partners, Sidewalk Labs’
workforce strategy aims to support Torontonians of all ages and backgrounds so that they are trained to
compete, and remain competitive in the 21st-century economy. Sidewalk Labs also wants to help
employers — from tiny startups to major corporations — fill their talent needs. This strategy begins by
establishing a proposed non-profit entity, Sidewalk Works, to help those who are currently
underrepresented in the tech sector prepare for jobs in the new economy. Working closely with qualified
partners, Sidewalk Works would curate and influ- ence skills training to meet real-time employer needs,
recruit across the city to broaden workforce participation, and provide access points to the urban
innovation economy — all supported by cutting-edge digital tools. It would also champion equity in the
tech sector by convening employers in the IDEA Dis- trict across industries to identify and address
common challenges, build their capacity to support and retain diverse candidates, and drive equity
through economic opportunity. This approach continues by opening paths to the skilled trades. Sidewalk
Labs plans to ensure that at least 10 percent of hiring goes to those who need these jobs most, with a
focus on low-income youths, women, and Indigenous people. Contractors would be required to provide
opportunities for mentorships, internships, and other work-integrated learning opportunities, as well
as to consider qualified candidates from targeted communities first for professional, administrative,
and technical positions — an approach known as “first source” hiring.56 Finally, this workforce strategy
would be complemented by the rise of a world-leading Canadian industry focused on sustainable mass
timber building mate- rials and capable of creating thousands of full-time jobs, including higher-paying
jobs in carpentry specialties. These three main strategies would ensure the IDEA District can support
work opportunities for all Torontonians. Expanding opportunity with Sidewalk Works. Once Quayside is
up and running, the workforce development program Sidewalk Works would build an inclusive talent
pipeline, support on-site employers in filling real-time needs, and create a culture of inclusion in the
workplace. It would work closely with local partners, taking advantage of cutting-edge work in
sustainability, mobility, buildings, and technology to build on-ramps into the urban innovation economy.
First, Sidewalk Works would focus on growing and training an inclusive talent pipeline through youth
engagement, higher education partnerships, digital recruitment tools, training, and work-integrated
learning opportunities. It would work closely with local institutions and community agencies to curate a
range of training programs — including boot- camps, online courses, and micro-cre- dentials — that
blend the best of face-to- face and online learning and are designed to accommodate students with a
variety of schedules, skills, and backgrounds. Sidewalk Works would aim to build strong local
collaborations that can help support a diverse workforce, including with the Toronto Public Library and
George Brown College to offer skills development courses across the city; with Seneca College to train
next-generation building managers and operators; with the CEE Centre for Young Black Professionals and
the City of Toronto’s Partnership to Advance Youth Employment program to support training
opportunities in tech for youth; and with agencies such as ACCES Employment, Dixon Hall, and Miziwe
Biik Aboriginal Employment and Training to build awareness and opportunities for newcomers, low-
income people, and Indigenous people. Sidewalk Works would also work to connect tenant employers
with graduates of an entry-level information-technology (IT) certification course called the Google IT
Support Professional Certificate, a program developed by Google and Coursera to help non-traditional
candidates begin careers in technology. The course is one component of “Grow with Google,” an
initiative to help Canadians acquire the digital skills needed to get jobs or grow businesses. In Canada,
approximately 182,000 jobs need to be filled within the IT field in 2019.57 Many of these jobs do not
require a four-year college degree but do require skills and industry-relevant experience. While
designed to serve the needs of employers on-site, these and similar partnerships would also pay
dividends to the broader tech sector in Toronto by diversifying and accelerating the overall talent
pipeline. Second, Sidewalk Works would aim to ensure that employers can meet their talent needs by
gathering information about tenant employer needs through data collection and real-time analysis of
current skills gaps as well as direct engagement with human resources executives. Part of Sidewalk
Works would be a service called Talent Connect, a “talent concierge” that can provide curated access to
top-tier talent and assistance with navi- gating government-funded services and post-secondary co-op
and work place- ment programs. Talent Connect would be available to all member firms operating in the
IDEA District but would likely be of par- ticular value to small firms that may not have dedicated human
resources staff. Third, Sidewalk Works would work to set a standard for inclusive workplaces and
economic equity across the waterfront. Diversity does not rely only on training and recruitment alone:
building an inclusive workplace requires culture change. An employer consortium would be created to
share best practices, convene events, track key metrics, and build the capacity of employers to lead the
way in modelling a culture of inclusion. For its part, Sidewalk Labs is commit- ting to furthering diversity
and inclusion in the tech industry by joining RBC, LinkedIn, AutoDesk, and other industry leaders on
MaRS’ Inclusion Council. These firms could also join the Sidewalk Works employer consortium if they
locate on the eastern waterfront. Finally, the programs advanced by Side- walk Works align with the
goals of the Future Skills Centre recently announced by the federal government,58 including developing
innovative approaches to help Canadians gain emerging skills in demand now and into the future. While
still in the early stages of development, the Future Skills Centre will allocate half of its funding to
disadvantaged and underrepresented groups (including up to 20 percent for youth), reinforcing the
importance of creating inclusive economic opportunities. Broadening the construction workforce. The
Toronto Board of Trade projects that total construction activity in Toronto in the next 12 years will be 43
percent greater than it was over the past 15 years,59 with an anticipated 147,000 job openings in 500
construction-related occupations. Development across the full scale of the IDEA District could lead to
further shortages in skilled labour, generating ripple effects throughout the regional economy. This
demand for labour, combined with a rapidly aging population, creates not just an opportunity but a
competitive imperative to build and train Toronto’s construction workforce of the future. In Canada,
women account for approximately 13 percent of the construction workforce,60 and Indigenous people
account for roughly 3 percent. Nation- wide, just 9 percent of workers in the building trades are visible
minorities,61 despite the fact that visible minorities make up roughly 22 percent of the general
population.62 To help address this imbalance, Sidewalk Labs plans to build on the Waterfront Toronto
Employment Initiative, working with Construction Con- nections (a unique construction-sector workforce
development program man- aged by the city and the province) and Toronto Employment and Social
Services, to target at least 10 percent of construction hours for racialized youth, women, and Indigenous
people. Sidewalk Labs also plans to work with other partners in the employment and labour sectors to
support training opportunities for women, racialized youth, and Indigenous people; these groups
include the College of Carpenters and Allied Trades, Building Up, Dixon Hall, and Miziwe Biik Aboriginal
Employment and Training. Sidewalk Labs proposes to require that contractors provide opportunities for
mentorships, internships, and other work-integrated learning opportunities and implement a first-
source hiring approach for professional, administrative, and technical positions. Catalyzing the mass
timber industry. Canada owns about 37 percent of the world’s certified forests, defined by the
international Forest Stewardship Council as areas that can be harvested for wood in a sustainable way,
with proper spac- ing to regrow trees and with access to existing railways or roads to transport supplies.
Canada is also a world leader when it comes to ensuring innovative and sustainable forestry
management practices that safeguard our wood resources for future generations. But while Canada
harvests nearly 800,000 hectares of timber per year, the majority of that supply is devoted to framing
lumber, such as simple two-by- fours or plywood. As a result, Canada A new Ontario-based mass timber
factory would support 2,500 person-years of full-time employment over 20 years. currently imports mass
timber parts from Austria and other production centres instead of producing them itself. In Quayside,
Sidewalk Labs intends for the entirety of the planned 2.6 million- square-foot neighbourhood to be built
from mass timber, demonstrating beyond previous efforts the viability of this sustainable building
material for a variety of uses and forms. The hope is that this proof of concept would spur a more rapid
adoption of this material, enabling Cana- dian industry growth commensurate with its natural resources.
With a commitment for the proposed development scale of the River District, Sidewalk Labs is prepared
to catalyze industry growth with an investment to create a new Ontario-based factory for modular mass
timber construction. To be opened prior to the construction of Quayside, this factory would ensure the
delivery of a mass timber supply chain for building construction along the eastern waterfront and
beyond. Sidewalk Labs believes that the domestic supply of mass timber products pro- duced in such a
factory would support an estimated 2,500 person-years of full-time employment over a 20-year period.
The launch of this factory would have additional benefits for local workers. As described more in the
“Buildings and Housing” chapter of Volume 2, an enhanced mass timber industry could ultimately lead
to higher-paying factory jobs for new advanced carpentry work and bring about new local suppliers of
timber as well as competing factories over time. Finally, by accelerating development across the IDEA
District, a factory would catalyze an estimated 5.2 million total work hours for all factory-related trades.
By building on Toronto’s existing innovation ecosystem, creating the conditions for innovation, launching
a new applied research institute, and establishing a new venture fund for local companies, Sidewalk
Labs’ plan for the IDEA District can catalyze a cluster focused on urban innovation — and establish an
economic engine that drives growth far beyond the eastern waterfront. The city’s Official Plan articulates
the potential for a cluster-based approach to drive meaningful impact in Toronto: “Today, the real
competitive advantage for urban economies lies in the foundations that support growth in economic
clusters that bring new wealth to the region: a well-educated, highly-skilled labour force; research and
development leading to innovation; access to financial capital; ade- quate infrastructure, including
advanced information and communications networks; a dynamic business climate; an enviable quality
of life; and safe, cohesive, congenial and inclusive neighbourhoods.”63 Consistent with these objectives,
Side- walk Labs’ approach to sparking a new cluster for urban innovation along the waterfront draws
inspiration from global examples of successful clusters but is specifically designed to address the chal-
lenges to improving life in cities today. This approach can shape the future of the field, create thousands
of jobs, and drive economic opportunity well beyond the waterfront. Part 2 of this chapter outlines the
steps necessary to catalyze such a cluster. First, this cluster would be designed to build on top of
Toronto’s existing innovation ecosystem, including its world-class academic and research institutions
and its support from all levels of government, towards promoting related technology industries. To
build on that foundation, Sidewalk Labs would integrate the unique physical, digital, and policy
conditions — found nowhere else at scale throughout the world — necessary to help researchers,
entrepreneurs, startups, civic organizations, government agencies, and all third parties tackle difficult
urban challenges. Beyond these unique conditions, Sidewalk Labs plans to further spark this cluster
through seed funding for a new Urban Innovation Institute focused on applied research for urban
innovation as well as a new venture fund to support local, early-stage enterprises. Sidewalk Labs believes
the combination of these ingredients will create the conditions for innovation, catalyzing economic
activity in Toronto, driving meaningful contributions to the field of urban innovation globally, and
drawing innovators from around the world to research, invest, explore, build, and scale ideas that can
improve the quality of life in cities. The city’s Official Plan articulates the potential for a cluster-based
approach to drive meaningful impact in Toronto: “Today, the real competitive advantage for urban
economies lies in the foundations that support growth in economic clusters that bring new wealth to
the region: a well-educated, highly-skilled labour force; research and development leading to innovation;
access to financial capital; ade- quate infrastructure, including advanced information and
communications networks; a dynamic business climate; an enviable quality of life; and safe, cohesive,
congenial and inclusive neighbourhoods.”63 Consistent with these objectives, Side- walk Labs’ approach
to sparking a new cluster for urban innovation along the waterfront draws inspiration from global
examples of successful clusters but is specifically designed to address the challenges to improving life in
cities today. This approach can shape the future of the field, create thousands of jobs, and drive
economic opportunity well beyond the waterfront. Part 2 of this chapter outlines the steps necessary to
catalyze such a cluster. First, this cluster would be designed to build on top of Toronto’s existing innova-
tion ecosystem, including its world-class academic and research institutions and its support from all
levels of government, towards promoting related technology industries. To build on that foundation,
Sidewalk Labs would integrate the unique physical, digital, and policy conditions — found nowhere else
at scale throughout the world — necessary to help researchers, entrepreneurs, startups, civic organiza-
tions, government agencies, and all third parties tackle difficult urban challenges. Beyond these unique
conditions, Sidewalk Labs plans to further spark this cluster through seed funding for a new Urban
Innovation Institute focused on applied research for urban innovation as well as a new venture fund to
support local, early-stage enterprises. Sidewalk Labs believes the combination of these ingredients will
create the conditions for innovation, catalyzing economic activity in Toronto, driving meaningful
contributions to the field of urban innovation globally, and drawing innovators from around the world
to research, invest, explore, build, and scale ideas that can improve the quality of life in cities. Sidewalk
Labs was established with the belief that integrating forward-thinking urban design and technological
solutions can address big urban challenges and improve quality of life in cities around the world. This set
of solutions informs Side- walk Labs’ definition of urban innovation, broadly described as the
interdisciplinary approach to integrating innovations that address all aspects of life in cities into the
urban fabric. By some measures, the field of urban innovation is now the biggest tech sector on the
planet, attracting more venture capital investment than high-growth fields like biotech and artificial
intelli- gence. After all, urban innovation sits at the intersection of two of the defining trends of the 21st
century: global urban- Just as Sidewalk Labs has employed a comprehensive approach to urban plan-
ning that integrates innovations across its core focus areas, advancements in the emerging field of urban
innovation often require bringing together players, expertise, and disciplines that might not otherwise
intersect in traditional planning practices. The new technologies or solutions that emerge out of this
approach are driven by interdisciplinary collaboration and reflect coordination across many stakeholders
— public, private, and non- profit sectors alike. They reflect iteration and testing enabled through access
to a large-scale, real-world urban environment. And they fall along a broad design spec- trum: from
highly technical solutions like The process of driving affordable housing innovation could be
fundamentally dif- ferent within an urban innovation cluster. Sidewalk Labs’ own strategy creates new
financial tools for below-market housing programs, including factory-driven land value, condo resale
fees, and affordability by design. It also drives meaningful public-private partnerships, as with the
proposed Waterfront Housing Trust and collaboration model with the non-profit sector. These proposed
approaches mobilize governments, developers, academics, and non-profits to work together — and thus
more powerfully — to solve a major challenge in Toronto. Housing affordability is just one aspect of
urban life that could benefit from advancements in the field of urban innovation. Establishing a cluster
for urban innovation could provide the necessary conditions and resources to significantly accelerate the
pace and frequency of developing innovative solutions to address a wide range of urban issues — from
traffic congestion to building design to greenspace access — and further the development of the field
overall. Much more than just the pursuit of urban efficiencies associated with “smart cities,” urban
innovation is a diversified set of industries — from mobility to waste management to construction and
beyond — in the process of being redefined by capabilities such as ubiquitous connectivity, machine
learning, sensing technology, and digital fabrication. Between 2016 and 2017, urban tech’s share of
global VC funding surged from 13 percent to 22 percent.64 And this is just the start: as mentioned in the
chapter introduction, by 2025, the sector’s market value is projected to grow to over $2 trillion USD.
mobility management systems to more systemic solutions like enabling a new pipeline for mass timber
construction. For example, consider the various players and resources that need to be in place today to
make meaningful improvements in housing affordability. Government agencies, financial institutions,
private and non-profit developers and operators, housing experts, residents, and community
stakeholders all play a part. Developing affordable units today often looks like a series of handoffs
between these players, ranging from governmental approvals to redesign processes. Sidewalk Labs was
established with the belief that integrating forward-thinking urban design and technological solutions
can address big urban challenges and improve quality of life in cities around the world. This set of
solutions informs Side- walk Labs’ definition of urban innovation, broadly described as the
interdisciplinary approach to integrating innovations that address all aspects of life in cities into the
urban fabric. By some measures, the field of urban innovation is now the biggest tech sector on the
planet, attracting more venture capital investment than high-growth fields like biotech and artificial
intelli- gence. After all, urban innovation sits at the intersection of two of the defining trends of the 21st
century: global urban- Just as Sidewalk Labs has employed a comprehensive approach to urban planning
that integrates innovations across its core focus areas, advancements in the emerging field of urban
innovation often require bringing together players, expertise, and disciplines that might not otherwise
intersect in traditional planning practices. The new technologies or solutions that emerge out of this
approach are driven by interdisciplinary collaboration and reflect coordination across many stakeholders
— public, private, and non- profit sectors alike. They reflect iteration and testing enabled through access
to a large-scale, real-world urban environment. And they fall along a broad design spec- trum: from
highly technical solutions likeThe process of driving affordable housing innovation could be
fundamentally dif- ferent within an urban innovation cluster. Sidewalk Labs’ own strategy creates new
financial tools for below-market housing programs, including factory-driven land value, condo resale
fees, and affordability by design. It also drives meaningful public-private partnerships, as with the
proposed Waterfront Housing Trust and collaboration model with the non-profit sector. These proposed
approaches mobilize governments, developers, academics, and non-profits to work together — and thus
more powerfully — to solve a major challenge in Toronto. Housing affordability is just one aspect of
urban life that could benefit from advancements in the field of urban innovation. Establishing a cluster
for urban innovation could provide the necessary conditions and resources to significantly accelerate the
pace and frequency of developing innovative solutions to address a wide range of urban issues — from
traffic congestion to building design to greenspace access — and further the development of the field
overall. Much more than just the pursuit of urban efficiencies associated with “smart cities,” urban
innovation is a diversified set of industries — from mobility to waste management to construction and
beyond — in the process of being redefined by capabilities such as ubiquitous connectivity, machine
learning, sensing technology, and digital fabrication. Between 2016 and 2017, urban tech’s share of
global VC funding surged from 13 percent to 22 percent.64 And this is just the start: as mentioned in the
chapter introduction, by 2025, the sector’s market value is projected to grow to over $2 trillion USD.
mobility management systems to more systemic solutions like enabling a new pipeline for mass timber
construction. For example, consider the various players and resources that need to be in place today to
make meaningful improvements in housing affordability. Government agencies, financial institutions,
private and non-profit developers and operators, housing experts, residents, and community
stakeholders all play a part. Developing affordable units today often looks like a series of handoffs
between these players, ranging from governmental approvals to redesign processes. Economic clusters
are dense ecosystems of companies, researchers, investors, Core to the economic resilience of a cluster
or economy is the number and vitality of small firms that make up a cluster. While a single company or
institution may serve a catalytic role in the creation suppliers, and anchor institutions working together
in a similar field. As theorized by economist Michael Porter, clusters boost firm productivity in three
ways. First, the sharing of suppliers, facilities, and infrastructure creates economies of scale that can be
realized by firms of all sizes and maturities. Second, clusters enable the pooling of workers with relevant
skills and experience, often supported them through specialized degree programs. Finally, clusters
accelerate learning driven by physical proximity, vigorous competition, and advanced research by anchor
institutions with industry-relevant expertise. Co-location thus creates outsized gains for cluster
participants and accelerates the pace of industry innovation, boosting regional economic performance
(including through higher levels of wage and employment growth as well as spillover benefits to related
economic sectors) and serving as a critical lever for foreign investment. Across a range of industries, as
clusters grow and become more specialized, efficiency and productivity have been demonstrated to
increase at an average of 4 to 5 percent.65 The benefits of cluster growth apply to fields far beyond
computers and technology. In industries as varied as health care, manufacturing, agtech, and more, the
cluster model has demonstrated potential for driving transformational impact within a given
municipality or economy. Sidewalk Labs’ own approach draws inspiration from several precedents,
including cities that are comparable to Toronto in quality of life, innovation culture, and concentration of
tech workers, such as Seattle, Boston, and Stockholm, as well as global examples of clusters in other
industries, such as Houston’s health care hub or the growing agtech hub in St. Louis. Cities best able to
realize the benefits of the cluster are those designed as open systems — with structures and resources in
place to not only allow for co-location but to encourage collaboration between firms, institutions,
academics, and the public. In addition to improving regional employment growth over time, economic
clusters have the added benefit of improving resilience against potential downturns, contributing to
higher rates of employment growth during recessions as compared to economies of other cities as well
as faster than average growth rates in the wake of a recession. of a cluster, larger firms may be more
vulnerable to external events. Over time, the growth of startups and spin-off businesses is crucial to
improving the economic resilience within a given industry or geographic area. Take Seattle, where
major players like Boeing and Microsoft were instrumental in the city’s emergence as a globally signif-
icant leader in both tech and aerospace. The concentration of talent and expertise drawn to Seattle by
these two anchor firms has since spurred the spin-off of over 4,000 companies. The growth of smaller,
earlier-stage enterprises has contributed both to the resiliency and overall growth of the tech industry
— which rose over 33 percent between 2011 and 2016.67 Canadian policy-makers are already focused
on the critical importance of traded clusters for economic growth. The federal government’s recently
announced Innovation Superclusters Initiative, for example, commits close to $1 billion to support five
new innovation “superclusters,” from ocean-based industries in Atlantic Canada to digital technology
in British Columbia.68 There is a concerted regional effort to transform the 110-kilometre Toronto-
Waterloo Innovation Corridor into one of the world’s leading technology clusters. Local planners and
Houston: A health-care cluster that generates $20 billion USD annually In Houston, over 60 member
institutions make up a health-care cluster, anchored by the Texas Med- ical Center Corporation, that
employs over 110,000 people and contributes $20 billion USD annually to the regional economy. Mixed-
use facilities throughout the cluster, all connected by a privately operated transit system, encourage
collaboration on shared research priorities that are both relevant to individual mem- bers and
strategically important to the promotion of Houston’s competitiveness on a global scale. Making
collaboration across industries more convenient and more valuable has been critical to advancing these
goals, spawning groundbreaking work in new fields such as genomics and regener- ative medicine, and
raising Houston’s global profile in health care. The cluster’s success has prompted plans for a new
innovation centre, TM3, a 12-hectare campus to support commercialization of research and attract new
venture capital entrants. TM3 alone is expected to add an additional $5.2 billion USD and nearly 30,000
jobs to the local economy, a testament to the virtuous economic cycle created by the cluster’s success in
supporting an open ecosystem for innovation.66 policy-makers are also leveraging the cluster model to
drive economic growth. The Port Lands Planning Framework speaks to the benefits of economic clus-
ters, including the “live-work synergies that will be created with the diversity of employment clusters
and uses proposed both in proximity to the new communities, but also in the communities themselves.”
But despite the impressive growth in the field of urban innovation, no city or region has come to
dominate the market. Some cities are focusing on subsets of urban technology such as self-driving
vehicles (in Detroit), drones (in Calgary), or modular construction (in Singapore). Many more are
changing their regulations to accommodate disruptive outsiders such as Uber or Airbnb or are
developing “smart city” master plans to incorporate technology into municipal operations. But very few
have seized on urban innovation, broadly defined, as an industry in and of itself. Sidewalk Labs believes
that the conditions it plans to help create within the IDEA District will position Toronto to be that place,
growing a world-leading cluster in urban innovation that delivers outsized economic benefits to the
region. The challenges facing urban innovators Clusters are difficult to create in their own right. But for
many reasons, the creation and expansion of a cluster in urban innovation poses an even greater set of
challenges. First, urban innovation often requires integration with the built environment, increasing the
cost of prototyping, requir- ing greater coordination among more stakeholders, and making it difficult to
test and commercialize early-stage concepts. It can be far more difficult to prototype a new system for
flexible, rearrangeable walls in ground-floor retail space, than it is to test a new app on iOS. Second,
urban innovation often requires close coordination with government and existing policy. Take an
innovation that is focused on creating more sustainable and cost-efficient street lights that provide
brighter and safer night-time environments while using less power. Innovators often must coordinate
with formal or informal authorities, even for early testing, to secure necessary input, buy-in, authori-
zation, or permits. Coordination becomes more complicated and time-intensive as innovators move from
testing to scale and as new stakeholders introduce additional constraints or complexities. Finally, unlike
other disciplines where innovators are encouraged to fail fast, urban innovation can have higher stakes.
Changes to construction technologies that inadvertently compromise structural integrity are not
acceptable — unsafe buildings have significant real-world consequences. The same holds true for self-
driving vehicle testing and other innovations that operate in public space. To help potential innovators
over- come these challenges, Sidewalk Labs’ approach to creating an urban innovation cluster on the
waterfront is focused on creating the core physical, digital, and policy conditions — in coordination with
government. Together these conditions safely minimize and mitigate barriers to urban innovation,
increase the ability for a diverse set of entrepreneurs and companies to explore new ideas, encourage
the sharing of lessons learned, and accelerate the potential for breakthroughs. Sidewalk Labs would
work to mitigate barriers to urban innovation, support a diverse set of entrepreneurs and companies,
encourage lesson- sharing, and accelerate potential breakthroughs. Sidewalk Labs believes an urban
innovation cluster would be even more diversified and resilient than a normal economic cluster,
spanning a wide range of sectors, building on Toronto’s competitive strengths, and responding to a
global demand for city life that is only expected to grow in the coming years. Seeding the urban
innovation economy in Toronto would significantly contribute to local efforts to catapult the Toronto-
Waterloo Innovation Corridor onto the global stage, generating a wave of new startups and creating
strong incentives for Canadian innovators to stay at home.

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Any comprehensive approach to urban development requires a strong plan for economic growth with an

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